An 'Interest Rate Swap' Generally Involves

question 9

Multiple Choice

An 'interest rate swap' generally involves:

• A) a lender and a borrower agreeing to change a floating interest rate to a fixed interest rate or vice versa
• B) two (or more) parties exchanging floating interest rates for fixed interest rates on loans
• C) two (or more) parties agreeing to guarantee each others' loan obligations
• D) two (or more) parties in different countries agreeing to deal at fixed currency exchange rates